Given OnLive's core competency of streaming high-end games across the Internet, it doesn't come as a surprise that streaming a relatively basic Windows 7 desktop doesn't pose much of a problem for the company. Everything runs very smoothly. While there often is some perceptible lag – especially when scrolling through documents or using multi-touch gestures to zoom in and out – it's never so bad as to become a dealbreaker.

Word, Excel and PowerPoint – But No SkyDrive Access and No Browser

So here is what you get with your free account: access to Word, Excel and PowerPoint (the 2010 versions), as well as the ability to sync documents from your desktop. Given that OnLive's business plan depends on selling you additional storage, it doesn't come as too much of a surprise that the productivity apps are pretty locked down. You can't access date your stored in Microsoft's cloud on SkyDrive, for example. Office's "Save & Send" option has been disabled to prevent this.

The free version also doesn't include access to a browser. This will come in the paid versions versions, according to OnLive, but those won't be available for a while.

You do get 2GB of free storage on OnLive's servers, though, as well as Mac and Windows apps to sync folders from your desktop to OnLive.

More Caveats

Here are a few other caveats: the free plan, which is the only one available right now, only provides "as-available" access to your desktop. Access depends on availability, so don't use this as your only option for giving that important presentation. Paid accounts, which will launch later this year, will give you priority access, but apparently won't come with a service guarantee either.

Nice Tech Demo – Not Very Useful (Yet)

For now, then, the OnLive desktop is a nice tech demo. It's clearly the child of a transitional period where we can't do everything we would like to do on our tablets yet. Editing documents isn't one of those things, though, thanks to a growing number of native apps for the iPad and while many will surely install the app just for the sake of it, I venture to guess that the free version won't find too many regular users anytime soon. In the enterprise, there may just be a niche for this, though, but only once administrators can deploy their own apps on these remote desktops.

The OnLive app also clearly shows that Windows 7 wasn't developed with tablets in mind. It works alright, but feels like a chore compared to iOS or Android.